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Friday, August 30, 2013

Developing Global Cultural Intelligence in Multinational Firms

Organizations that work within
multiple-countries have varying cultures and subgroups within their working
populations. As multi-national firms become more common it is necessary for
leaders to develop a level of cultural intelligence in order to function
effectively with people of varying backgrounds. A team of researchers Rockstuhl,
et. al. (2011) investigated an elusive concept that has been gaining attention
called cultural intelligence. Where IQ helps one solve problems and emotional
intelligence (EI) encourages inter-personal relations, cultural intelligence
(EQ) may impact international leadership effectiveness.

Changing environments require
changes in the skill set of leaders. Due to these changes the careful
selection, grooming, and development of leaders within the global economy are
necessary to meet new challenges (Avolio, et, al., 2009). Despite this need,
most leadership literature has been focused on domestic leadership skills
without emphasis on decisions within a more complex global environment.

Global leaders have a greater
awareness that exists beyond national borders. To effectively work as a global
leader it is necessary to 1.) adopt a multi-cultural perspective beyond
national borders; 2.) balance both local and global demands even when they are
in contradiction; and, 3.) work with multiple cultures simultaneously instead of
with a single culture (Barlett & Goshal, 1992). As each culture views
leadership slightly different it is necessary for the multi-national leader to
develop a larger perspective to fit within these perceptions.

To develop this wider perspective
a level of intelligence is needed to not only manage daily affairs across
borders, the complexity of business operations, but also the social aspects of
leading. Both general intelligence (IQ) (Judge, et. al, 2004) and emotional
intelligence (EI) (Caruso, 2002) have done well in explaining leadership
success in national contexts. Yet this leaves cross-border leadership still
undefined and elusive to many researchers.

Metacognitive cultural
intelligence (CQ) is a level of conscious awareness about different cultures,
their underlining assumptions, and how these assumptions impact behavior. They
use deep level processing to create cognitive maps of cultures and peoples in
social settings in order to navigate those settings for effective
outcomes.As more life experience is
earned they continue to adjust and update their mental maps (Triandis, 2006).
They are rarely stagnant and always adjusting.

Those with such skills have an
intrinsic interest in cultures, understand non-verbal cues and are able to
better to communicate with people (Rockstuhl, et. al, 2011). They have a
natural sense of what people need and try and put them at ease in order to
better communicate. With their ability to understand themselves, people within
the environment, and challenge assumptions they become more accurate in their
influential behavior. Throughout their lives this process becomes more
accurate, more aware, and more effective.

The researchers (Rockstuhl, et.
al, 2011) used 126 military leaders from the Swiss Military Academy in Zurich. Each
of the participants were part of a 3 year program to improve their cross-border
effectiveness due to increased likelihood of international conflict. The
results found that IQ was related to effectiveness. Emotional Intelligence (EI)
was related to general effectiveness within national borders but not
internationally.Cultural Intelligence
(CQ) was related to overall cross-border effectiveness. This increased as
people become more culturally aware.

Rockstuhl, et. al. (2011). Beyond
General Intelligence (IQ) and Emotional Intelligence (EQ): The Role of Cultural
Intelligence (CQ) on Cross-Border Leadership Effectiveness in a GlobalizedWorld.
Journal of Social Issues, 67 (4),